Honeywell International Earnings: Here’s Why Shares are Up Now

Honeywell International Inc. (NYSE:HON) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 2%.

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Honeywell International Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 16.35% to $1.21 in the quarter versus EPS of $1.04 in the year-earlier quarter.

Revenue: Rose 0.23% to $9.33 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Honeywell International Inc. reported adjusted EPS income of $1.21 per share. By that measure, the company beat the mean analyst estimate of $1.14. It missed the average revenue estimate of $9.44 billion.

Quoting Management: “Honeywell delivered better than expected quarterly earnings and margins even in a continued slow global growth environment,” said Honeywell Chairman and CEO Dave Cote. “We had strong productivity in the quarter, and our balanced portfolio of both short- and long-cycle businesses continues to drive our outperformance. As a result of our strong start to 2013, we’re raising the low-end of our full-year earnings guidance by five cents. We’re achieving these results in a slow growth environment while also maintaining our seed planting for the future by investing in new products and technologies, geographic expansion, and driving our key process initiatives. And, it will continue. It’s what will help Honeywell deliver top-tier earnings performance this year and over the long-term.”

Key Stats (on next page)…

Revenue decreased 2.64% from $9.58 billion in the previous quarter. EPS increased 10% from $1.10 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.22 and has not changed. For the current year, the average estimate has moved up from a profit of $4.92 to a profit of $4.94 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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